The Bitcoin market is experiencing significant fluctuations with sharp price declines raising interest and concern among investors. How will this affect the future of cryptocurrency and what to expect from the economy as a whole?
Current State of the Cryptocurrency Market
Bitcoin continues its fall, reaching prices not seen since November 11, 2024. At the peak of the correction, BTC briefly traded at $82,256, but analyses suggest that further downside could occur. Independent analyst Scott Melker notes that 'bullish divergence with oversold RSI is still in play, but confirmations are needed.'
Fear and Greed Index Status
As Bitcoin charts new lows and risks falling back into the $70,000 zone, the Crypto Fear & Greed Index slipped to a one-year low at 21, a zone described as ‘extreme fear.’
US Economic Situation and Its Impact
Beyond the weakness in the crypto market, which has been present for nearly a week, US equities markets also sold off, with the S&P 500 dropping after US President Donald Trump vowed to implement 25% tariffs against the EU. This was complemented by a memo instructing federal agencies on conducting mass layoffs.
While Bitcoin’s record-size liquidations over the past three days may have unveiled a 'generational buying opportunity,' analysts are not yet ready to conclude that the worst part of the selling is over. Some suggest Bitcoin's price may bottom in the $80,000 to $71,000 range.
